Criminal Prosecution can be Initiated for wrong disclosure in Balance Sheet
Sunday, 15 July 2012
Saturday, 14 July 2012
THE STAMP PAPERS DO NOT HAVE ANY EXPIRY PERIOD
Brief: According to a Supreme Court judgement dated 19/02/2008 in the case of Thiruvengada Pillai Vs Navaneethammal and Anr.,
CITATION: THIRUVENGADA PILLAI VS NAVANEETHAMMAL AND ANR.
Judgment: According to a Supreme Court judgment dated 19/02/2008 in the
case of Thiruvengada Pillai Vs Navaneethammal and Anr, the stamp papers
do not have any expiry period. Relevant extract from SC Judgment is
reproduced herein below:
"The Indian Stamp Act, 1899 nowhere
prescribes any expiry date for use of a stamp paper. Section 54 merely
provides that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can
seek refund of the value thereof by surrendering such stamp paper to the
Collector provided it was purchased within the period of six months
next preceding the date on which it was so surrendered.
The
stipulation of the period of six months prescribed in section 54 is only
for the purpose of seeking refund of the value of the unused stamp
paper, and not for use of the stamp paper. Section 54 does not require
the person who has purchased a stamp paper, to use it within six months.
Therefore, there is no impediment for a stamp paper purchased more than
six months prior to the proposed date of execution, being used for a
document.
Regards
Prakash Verma
Truegovernanceleague
Wednesday, 11 July 2012
Latest Case - Supreme Court
of India
Cox & Kings Ltd. Vs. Indian Rly. Catering & Tourism
Corporation Ltd.& Anr., (With Contempt Petition (Civil) Nos.41-43 of 2012
In Special Leave Petition (Civil) Nos.965-967 of 2012) - Jul 5 2012
Issue
Arbitration and Conciliation Act, 1996 - Section 9
Arbitration and Conciliation Act, 1996 - Section 9
Synopsis
The Ministry of Railways sanctioned the proposal submitted by the Indian Railway Catering & Tourism Corporation Ltd. for operating a Luxury Tourist Train on a Pan- India route within India. The Petitioner was selected as the Joint Venture shareholder for the operation of the Luxury Tourist Train Project. The proposal was approved based on certain principles for running the said train which was set out by the Indian Railways. During the operation of the Joint Venture certain disputes arose between the shareholders regarding the working of the Joint Venture Agreement and the Memorandum of Understanding, which led to the termination of the lease arrangement by the Respondent, IRCTC. The Petitioner initiated a proceeding under Section 9 of the Arbitration and Conciliation Act, 1996, under the Arbitration Clause contained in Article 30 of the Joint Venture Agreement, for staying the termination of the lease agreement and also to allow the arrangements to continue. It was pointed out by the Division Bench of the High Court, that the Petitioner was not entitled to question the termination as by itself it had no existence as far as the running of the train was concerned and it was not a party to the proceedings. In fact, the Petitioner had attempted to either fix the Lease Agreement, which was terminated, or to create a fresh Agreement to enable the Petitioner to run the luxury train till a decision was arrived at in Clause 9 of the Application. Though the Petitioner had invested large sums of money in the project, it was not entitled to pray for and obtain a compulsory order of injunction to operate the train once the lease agreement was terminated. The Division Bench rejected the submission that the Joint Venture Agreement was similar to a partnership. The Division Bench of the High Court stated that the Petitioner’s remedy would lie in an action for damages against IRCTC for breach of any of the terms and conditions of the Joint Venture Agreement and the Memorandum of Understanding. It was held that parties should appoint an Arbitral Tribunal to settle their disputes regarding the operation of the train by IRCTC. The Special Leave Petitions was therefore dismissed and it was also stated that if an Arbitral Tribunal is appointed, the aforesaid arrangement would be subject to the decision of the Arbitral Tribunal and that the observations made by the learned Single Judge, the Division Bench of the High Court and this court, should not, in any way, influence the outcome of the arbitral proceedings, if resorted to by the parties.
The Ministry of Railways sanctioned the proposal submitted by the Indian Railway Catering & Tourism Corporation Ltd. for operating a Luxury Tourist Train on a Pan- India route within India. The Petitioner was selected as the Joint Venture shareholder for the operation of the Luxury Tourist Train Project. The proposal was approved based on certain principles for running the said train which was set out by the Indian Railways. During the operation of the Joint Venture certain disputes arose between the shareholders regarding the working of the Joint Venture Agreement and the Memorandum of Understanding, which led to the termination of the lease arrangement by the Respondent, IRCTC. The Petitioner initiated a proceeding under Section 9 of the Arbitration and Conciliation Act, 1996, under the Arbitration Clause contained in Article 30 of the Joint Venture Agreement, for staying the termination of the lease agreement and also to allow the arrangements to continue. It was pointed out by the Division Bench of the High Court, that the Petitioner was not entitled to question the termination as by itself it had no existence as far as the running of the train was concerned and it was not a party to the proceedings. In fact, the Petitioner had attempted to either fix the Lease Agreement, which was terminated, or to create a fresh Agreement to enable the Petitioner to run the luxury train till a decision was arrived at in Clause 9 of the Application. Though the Petitioner had invested large sums of money in the project, it was not entitled to pray for and obtain a compulsory order of injunction to operate the train once the lease agreement was terminated. The Division Bench rejected the submission that the Joint Venture Agreement was similar to a partnership. The Division Bench of the High Court stated that the Petitioner’s remedy would lie in an action for damages against IRCTC for breach of any of the terms and conditions of the Joint Venture Agreement and the Memorandum of Understanding. It was held that parties should appoint an Arbitral Tribunal to settle their disputes regarding the operation of the train by IRCTC. The Special Leave Petitions was therefore dismissed and it was also stated that if an Arbitral Tribunal is appointed, the aforesaid arrangement would be subject to the decision of the Arbitral Tribunal and that the observations made by the learned Single Judge, the Division Bench of the High Court and this court, should not, in any way, influence the outcome of the arbitral proceedings, if resorted to by the parties.
Vishwanath S/o Sitaram
Agrawal Vs. Sau. Sarla Vishwanath Agrawal - Jul 4 2012
Issue
The Hindu Marriage Act, 1955 (for brevity ''the Act'') - Section 13(1) (ia); Code of Civil Procedure - Section 100; Indian Penal Code - Sections 494, 498A
The Hindu Marriage Act, 1955 (for brevity ''the Act'') - Section 13(1) (ia); Code of Civil Procedure - Section 100; Indian Penal Code - Sections 494, 498A
Synopsis
The marriage between the appellant and the respondent was solemnized as per the Hindu rites but due to total disagreement in their marital life the appellant-husband filed a petition for divorce under Section 13(1) (ia) of The Hindu Marriage Act, 1955. The main issues involved in this matter were whether the appellant was able to prove the alleged cruelty and whether he was entitled to take disadvantage of his own wrong. The learned trial Judge dismissed the application and also dismissed the application of the respondent-wife for grant of permanent alimony. The appellant-husband preferred Civil Appeal which was again dismissed. Being dissatisfied with the judgment and decree passed by the learned appellate Judge, the husband preferred Second Appeal before the High Court. It was stated that the expression ''cruelty'' had an inseparable link with human conduct or human behaviour. It was always dependent upon the social strata or the milieu to which the parties belong, their ways of life, relationship, temperaments and emotions that had been conditioned by their social status. The conduct and circumstances made it clear that the respondent-wife had really humiliated him and caused mental cruelty. Her conduct clearly showed that it had resulted in causing agony and anguish in the mind of the husband. She had publicized in the newspapers that he was a womanizer and a drunkard. She had made false allegations about his character. She had made an effort to prosecute him in criminal litigations which she had failed to prove. The feeling of deep torture, disappointment and frustration of the husband was apparent. Thus, it was held that husband could not be asked to put up with the conduct of the wife and to continue to live with her. Therefore, he was entitled to a decree for divorce. The other issue was the grant of permanent alimony. Permanent alimony was to be granted taking into consideration the social status, the conduct of the parties, the way of living of the spouse and such other adjunct prospects. The amount that was already paid to the respondent- wife towards alimony was to be ignored as the same had been paid by virtue of the interim orders passed by the courts. It was not expected that the respondent-wife had sustained herself without spending the said money. Cases referred to were: i.) Sirajmohamedkhan Janmohamadkhan vs. Hafizunnisa Yasinkhan and another, (1981) 4 SCC 250, ii.) Shobha Rani vs. Madhukar Reddi, 1988 (1) SCC 105. The appeal was allowed, the judgments and decrees of the courts below were set aside. Consequently, a decree for divorce in favor of the appellant was granted and the wife was granted Rs.50 lacs towards permanent alimony.
The marriage between the appellant and the respondent was solemnized as per the Hindu rites but due to total disagreement in their marital life the appellant-husband filed a petition for divorce under Section 13(1) (ia) of The Hindu Marriage Act, 1955. The main issues involved in this matter were whether the appellant was able to prove the alleged cruelty and whether he was entitled to take disadvantage of his own wrong. The learned trial Judge dismissed the application and also dismissed the application of the respondent-wife for grant of permanent alimony. The appellant-husband preferred Civil Appeal which was again dismissed. Being dissatisfied with the judgment and decree passed by the learned appellate Judge, the husband preferred Second Appeal before the High Court. It was stated that the expression ''cruelty'' had an inseparable link with human conduct or human behaviour. It was always dependent upon the social strata or the milieu to which the parties belong, their ways of life, relationship, temperaments and emotions that had been conditioned by their social status. The conduct and circumstances made it clear that the respondent-wife had really humiliated him and caused mental cruelty. Her conduct clearly showed that it had resulted in causing agony and anguish in the mind of the husband. She had publicized in the newspapers that he was a womanizer and a drunkard. She had made false allegations about his character. She had made an effort to prosecute him in criminal litigations which she had failed to prove. The feeling of deep torture, disappointment and frustration of the husband was apparent. Thus, it was held that husband could not be asked to put up with the conduct of the wife and to continue to live with her. Therefore, he was entitled to a decree for divorce. The other issue was the grant of permanent alimony. Permanent alimony was to be granted taking into consideration the social status, the conduct of the parties, the way of living of the spouse and such other adjunct prospects. The amount that was already paid to the respondent- wife towards alimony was to be ignored as the same had been paid by virtue of the interim orders passed by the courts. It was not expected that the respondent-wife had sustained herself without spending the said money. Cases referred to were: i.) Sirajmohamedkhan Janmohamadkhan vs. Hafizunnisa Yasinkhan and another, (1981) 4 SCC 250, ii.) Shobha Rani vs. Madhukar Reddi, 1988 (1) SCC 105. The appeal was allowed, the judgments and decrees of the courts below were set aside. Consequently, a decree for divorce in favor of the appellant was granted and the wife was granted Rs.50 lacs towards permanent alimony.
Saturday, 7 July 2012
SEBI's NEW AMENDMENT
Securities and Exchange Board of India has come up with yet another investor protection measure on July 06, 2012 vide Circular no.CIR/MIRSD/8 /2012 wherein the time limit for transfer of Equity Shares & Debt Securities for listed companies has been reduced to 15 days.
For analytical views on it please see the article on the following link:
http://india-financing.com/
Please do encourage your friends/colleagues to join this group - we continue to feed you with important updates
Regards
Prakash Verma
True Governance League - A Way to Root
Sunday, 1 July 2012
Recent Amendments:
- Due date for filing Annual Return for the LLP for the year ended 31st March, 2012 has further been extended to 31st July, 2012
- Change of shareholding pattern, with ulterior motive of gaining
management control, is oppression By [2012] 22 taxmann.com 302 (CLB)
- SEBI : Mumbai court could entertain complaint against a Kolkata
listed company for fraud took place in Mumbai By [2012] 22 taxmann.com
294 (BOM.)
- IT : Premium paid to insurer under 'Group Leave Encashment' scheme is out of sec. 43B ambit [Kerala]
- Appeal not admissible if admitted tax not paid; the defect is curable
if tax is paid afterward By [2012] 22 taxmann.com 235 (HYD. - ITAT)
- IT : Business of assessee becomes ready to commence upon set up of
requisite infrastructure By [2012] 22 taxmann.com 251 (DELHI)
-
If comparables are selected to make positive adjustments only, such
selection is unjustified By [2012] 22 taxmann.com 236 (CHENNAI - ITAT)
- Awarding of contract to lowest bidder is not 'price sensitive' news for insider traders By [2012] 22 taxmann.com 311 (SAT)
- CCI runs bulldozer over cement industry forming an anti-competitive
cartel; Rs. 6,300 crores penalty slapped By [2012] 22 taxmann.com 266
(CCI)
- ICSI releases Know Your Client norms for Practicing Company Secretaries
- Members may now upload their resume by logging in to www.icsi.in
Regards
Prakash Verma
True Governance League
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